Interest in the agribusiness sector among corporate investors is higher than it has been for many years, buoyed by an anticipated rise in global demand for food during the next few decades, delegates attending the Eurofruit Congress Middle East in Dubai this week have heard.
Carl Atkin, head of research at UK-based company Bidwells Agribusiness, told those attending the conference and networking event that investment could potentially be of considerable benefit to the horticultural sector as average consumer spending on food in sizeable emerging markets pushed up past the US$2 per day barrier.
'World food demand is predicted to increase by between 70 and 100 per cent by 2050, partly due to population growth and partly as a result of a shift in dietary demands,' said Mr Atkin.
However, with the area of additional land suitable for farming left in the world amounting to only around 12 per cent of the existing total, pressure on the availability of land for agriculture would have a role to play, he argued.
'It's unlikely we'll see a Malthusian-style catastrophe, but despite the fact investment is going on, it is slow and this could certainly be an issue,' he said.
The best chance for fresh produce suppliers to grow their business would come in the emerging markets of the world, such as Brazil, Russia, China and India, Mr Atkin suggested.
'There will be opportunities for growth in non-traditional markets and the emerging economies,' he said. 'As production and consumption of fruit and vegetables continues to grow in these markets, the challenge will be to address areas of waste and inefficiency, such as storage and the cold chain.'
More information about the Eurofruit Congress Middle East can be found at www.eurofruitcongress.com/me
